Bitcoin's recent rebound from this month's crash has fizzled, with the cryptocurrency sinking to $66,000 as U.S. stocks lose momentum. The Federal Reserve's minutes hint at a possible rate hike, causing a shift in the market sentiment. Bitcoin is now on track for its fifth consecutive weekly decline, and a breakdown of the $66,000 level could trigger a fresh downward leg.
On February 18, 2026, at 8:37 p.m., after some early Wednesday volatility, Bitcoin dropped to session lows under $66,000, putting pressure on its recent range. Having traded at $68,500 overnight, BTC is now down 2.5% over the past 24 hours, last trading at $66,200. Crypto stocks, which started the day stronger, followed suit, with Coinbase (COIN) turning its morning gains into a decline and Strategy (MSTR), the largest corporate holder of Bitcoin, down roughly 3%.
U.S. stocks, which had a strong start to the session, gave back much of their gains before the close of trading. The Federal Reserve's minutes from the January meeting of the Federal Open Market Committee (FOMC) were surprisingly hawkish, with several members suggesting a 'two-sided' guidance that could see the Fed hike rates if inflation persists. This, coupled with a stronger U.S. dollar, weighed on risk assets, including cryptocurrencies.
With today's slide, Bitcoin is now facing its worst streak since the 2022 bear market, staring at a fifth straight week of losses. The $66,000 area, which held as support last week, is now a key test. If this floor gives way, traders will likely look towards the early February lows at $60,000 or a fresh leg lower.
Despite the volatility, Bitcoin remains in the $67,000 area in late-morning U.S. trade. Gold reclaimed $5,000, and oil jumped as Polymarket odds of U.S. strikes on Iran before mid-March topped 50%. Crypto stocks bounced, outperforming stagnant cryptocurrencies.
But here's where it gets controversial... While some may argue that the current market conditions are a result of the Fed's hawkish stance, others might suggest that the cryptocurrency market is simply overvalued and due for a correction. And this is the part most people miss... The market's reaction to the Fed's minutes could be a sign of investors' growing concern about inflation, but it could also be a temporary reaction to short-term market fluctuations. So, what do you think? Do you agree or disagree with this interpretation? Share your thoughts in the comments below!
